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Calculate IRR to determine best design using a spreadsheet

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Reference no: EM132484422

Fiesta foundry is considering a new furnace that will allow them to be more productive. Three alternative furnaces are under consideration.

                                     Furnace A                  Furnace B                  Furnace C

Initial Investment        $450,000               $400,000                  $300,000

Annual Revenues          $80,000                $70,000                   $70,000

Annual Cost                $10,000                 $8,000                     $13,000

Salvage value             $50,000                 $40,000                    $35,000

Life of asset                15 years              15 years                   15 years

Question 1: Calculate IRR to determine best design using a spreadsheet.

Reference no: EM132484422

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